Len Penzo dot Comhttp://lenpenzo.com/blog
The offbeat personal finance blog for responsible people.Tue, 31 Mar 2015 12:15:59 +0000en-UShourly1An Example of How Saving In Cash Erodes Your Long Term Purchasing Powerhttp://feedproxy.google.com/~r/LenPenzo/~3/J3VwZvz_n88/id30362-an-example-of-how-saving-in-cash-erodes-your-long-term-purchasing-power.html
http://lenpenzo.com/blog/id30362-an-example-of-how-saving-in-cash-erodes-your-long-term-purchasing-power.html#respondTue, 31 Mar 2015 12:15:59 +0000http://lenpenzo.com/blog/?p=30362The trouble with holding long-term savings in cash is that the purchasing power of the U.S. dollar decreases every year because the federal government continually spends more than it earns.

Unfortunately, the erosion of the dollar’s purchasing power is slow enough that most people fail to recognize how devastating this can be over long periods of time. For this reason, the safest and most effective way of protecting your long-term savings‘ purchasing power over time is by holding physical gold and silver.

To illustrate this point, the good folks at Money Metals Exchange compared a precious metals investment worth $100 in 1971 to its purchasing power today.

Specifically, if you bought $100 worth of gold and $100 worth of silver in 1971 and then stuffed them in a coffee can, along with a solitary $100 Federal Reserve Note, this infographic shows the purchasing power of all three options — assuming you decided to spend them today:

]]>http://lenpenzo.com/blog/id30362-an-example-of-how-saving-in-cash-erodes-your-long-term-purchasing-power.html/feed0http://lenpenzo.com/blog/id30362-an-example-of-how-saving-in-cash-erodes-your-long-term-purchasing-power.html5 Store Brand Items That Are Definitely NOT Worth the Savingshttp://feedproxy.google.com/~r/LenPenzo/~3/59FarQZmA04/id30470-5-store-brand-items-that-are-definitely-not-worth-the-savings.html
http://lenpenzo.com/blog/id30470-5-store-brand-items-that-are-definitely-not-worth-the-savings.html#commentsMon, 30 Mar 2015 12:15:46 +0000http://lenpenzo.com/blog/?p=30470Yes, buying store brands is a great way to save money on your grocery bill — but the truth is, sometimes you’re better off sticking with the name brand product.

Long-time readers who have been following my blog probably know that, since my first store brand challenge in 2009, I’ve conducted more than a dozen taste test experiments that have evaluated almost 30 products using an extensive panel of culinary experts. (Yes, that would be my wacky family!) In fact, over the years I’ve run product taste tests on almost everything you can think of: from ice cream and Oreos to peanut butter and margarine.

So I wasn’t too surprised when, last week, Elle Martinez invited me to be a guest on her Couple Money podcast to discuss store brand products and how they compare with their name-brand counterparts.

During the interview, Elle asked if my testing revealed any name brand products that the store brands just couldn’t beat when it came to quality and taste. Of course, there were; but only a few of them.

Here are the five worst-performing store-brand products from all of those experiments — at least according to my expert panel — whose taste and quality failed to match their more-famous name brand counterparts:

Snack Crackers

The name-brand Ritz cracker trounced its store-brand knock-off. In fact, it was no contest. Some of the words used by my expert panel to describe the store brand Ritz knock-off cracker were: “pasty,” “chalky,” and “flavorless.” The store brand crackers were also given demerits for having a weird texture. The general consensus was that the store brand version of Ritz famous cracker couldn’t match the original’s buttery flavor. All in all, the panel praised the Ritz crackers for being tastier and crispier.

Fruit Cocktail

This was another battle that was almost over before it started. It was Del Monte in a landslide. The biggest complaint about the store brand fruit cocktail was that it was too syrupy — but many of the panelists also grumbled about the lack cherries and almost-colorless fruit. According to the panel, the Del Monte fruit cocktail scored points on multiple fronts, including its fresh fruit taste, vibrant color and, of course, the inclusion of cherries.

White Corn Tortilla Chips

When it comes to white corn tortilla chips, my expert panel felt that the Tostitos brand was clearly better-tasting than its store brand imitation. The store brand tortilla chips were found to be too salty. The panel said the store brand chips just couldn’t match crispness and flavor of its name-brand competition.

Margarine

The panel found that, when it comes to store-brand margarine, you don’t always get what you pay for. In my experiment, the store-brand margarine was so much worse than Land O’ Lakes Fresh Buttery Spread that fully one-third of the panelists gave the store brand a grade of ‘D’ or ‘F.’

Potato Chips

How bad are store brand potato chips? Judging from my expert panel, pretty bad. In fact, here’s how they described them: “ordinary, “too salty,” “stale,” “bitter,” “blah,” and “lacked flavor.” And those chips came from the same bag, which suggests a complete lack of uniformity and quality control. The chips from Lay’s fared significantly better.

By the way, here is a summary chart showing just how poorly these five store-brand products performed against their name-brand counterparts:

So there you have it. Some times you really doget what you pay for. For these five items, the higher cost is worth considering despite price premiums between 75% and 112%.

That being said, I know what you’re thinking: If you’re looking to save money, the good news is my expert panel found far more store brand products that actually outperformed their name brand counterparts in terms of taste and quality. I’ll cover those items next week.

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

Okay, off we go …

Credits and Debits

Debit: More cash-strapped Americans than ever are turning to so-called “refund anticipation” checks — and paying the fees that come with them — when getting tax preparation help; almost 22 million in 2014 alone. That’s up 17% since 2011.

Credit: Taxpayers aren’t the only ones who are cash-strapped: For those of you who still don’t believe that the United States’ debt situation is dire, check out this post by Brandon Smith — it explains why you probably should.

Debit: The bottom line is that the official $18 trillion National Debt is vastly understated. How understated is it? According to Professor Lawrence Kotlikoff of Boston University, the real National Debt was $205 trillion — in 2013.

Debit: That means US debt is at least 13 times its “official” GDP — which is America’s national income. There’s a word that describes most people with household debt equivalent to 13 times their annual income: bankrupt.

Debit: Don’t think the world doesn’t know the US is drowning in red ink — and that the US dollar is, therefore, on borrowed time. It’s why China has been patiently working behind the scenes to create an alternative to the current dollar-based international monetary system.

Credit: Yet another nail was pounded into the dollar’s coffin last week when the UK, Germany, France and Italy all applied to join China’s new Asian Infrastructure Investment Bank — despite US protestations. Even America’s traditional European allies see the writing on the wall.

Debit: Then again, our insolvent European allies are also desperate for more income — which is why Italy has resorted to taxing shadows. No, really. The tax applies to businesses with awnings that cast a shadow on public property.

Debit: And I thought Maryland’s rain tax was patently absurd. That tax, which went into effect last year, is based on the amount of rain that falls on developed property. Well, unless it’s government property. That’s exempt. Naturally.

Debit: Then there’s France: Not only did it just announce a prohibition on cash payments of more than 1000 euros ($1089), but the French government now requires people to report whenever they travel with gold. Think about that for a moment — because the implications are chilling. So much for liberté.

Credit: Speaking of gold … Until a couple of weeks ago, the mainstream media lamented that the yellow metal was on its worst “losing” streak in 40 years. I looked at it as simply an incredible opportunity to buy gold on sale.

Credit: Remember, despite their falling prices, gold and silver can still buy essentially the same amount of gasoline and other commodities that they could 40 years ago — unlike the dollars they’re measured against. And they always will.

Credit: Maybe that’s why Ireland’s Minister of Finance recently sold his euro shares for gold. Unfortunately, he bought “paper gold” in an ETF — which is fraught with counterparty risk — instead of physical metal, which has none.

Debit: Did you see this? An illiterate cook in Australia was awarded $200,000 after the restaurant owner forced him to work 12-hour shifts, 7 days a week, for 16 consecutive months. Yikes.

Credit: Before you get too indignant, you should know that his boss wasn’t a total slave-driver: The cook did get Christmas off.

Credit: I’m sure the rainbows-and-unicorns crowd will tell you it was most likely a paid holiday.

Debit: On a related note, a California restaurant owner was arrested last week for allegedly beating and enslaving one of his chefs over a period of more than three years. And food servers think they have it bad?

By the Numbers

Last month Hakim Emmanuel of Stoughton, Massachusetts, bowled a perfect 300 game while playing in a doubles league. Then he bowled another one. Then he bowled another one, making him an exclusive member of bowling’s 900 Club. How exclusive is it? Read on:

27 Number of official 900 series currently in the record books.

1997 Year when bowling’s governing body, the US Bowling Congress, first affirmed the feat.

1982 Year of the first unofficial 900 series, bowled by Glenn Allison. (The USBC said the oil in the lanes wasn’t compliant.)

1,460,000,000 Approximate number of all series bowled since 1997.

0.000000018% Chance of bowling a 900 series.

0.00008% Chance of being struck by lightning during an 80-year lifetime.

4 Number of 300 games bowled by Mr. Emmanuel. He bowled his fourth perfect game last week on the same lanes he recorded his 900 series.

Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

Last Week’s Poll Results

What is your favorite color?

Blue (35%)

Green (25%)

Purple (13%)

Red (10%)

Yellow (7%)

Something else (5%)

Orange (4%)

Black (1%)

Brown (0%)

More than 300 people responded to last week’s question. The most popular color among Len Penzo dot Com readers is blue; it was the favorite for slightly more than one out of three respondents. Perhaps not surprisingly, considering this is a website about money, green was next in popularity, preferred by one in four readers. As for the least popular color … well, that would be brown, which failed to get a single vote. Apparently, UPS drivers don’t read my blog.

Other Useless News

Here are the top 5 articles viewed by my 6314 RSS feed and weekly email subscribers over the past 30 days (excluding Black Coffee posts):

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com

This week’s article on Starbucks’ expensive coffee drew plenty of interesting responses, including this one from Garrett, who took exception to my suggestion for saving money by brewing Folgers at home:

I agree that Starbucks is overrated and overpriced, but Folgers?? Come on.

You’re right — but I was on a tight deadline and Chock Full O’ Nuts was too many words.

I’m Len Penzo and I approved this message.

Photo Credit: brendan-

]]>http://lenpenzo.com/blog/id30396-black-coffee-more-proof-that-taxes-grow-without-rain-and-sunlight.html/feed2http://lenpenzo.com/blog/id30396-black-coffee-more-proof-that-taxes-grow-without-rain-and-sunlight.htmlTop and Bottom US Federal Income Tax Rates Since 1913http://feedproxy.google.com/~r/LenPenzo/~3/tPcoB_XC3SQ/id30319-top-and-bottom-federal-income-tax-rates-and-tiers-since-1913.html
http://lenpenzo.com/blog/id30319-top-and-bottom-federal-income-tax-rates-and-tiers-since-1913.html#commentsThu, 26 Mar 2015 12:15:10 +0000http://lenpenzo.com/blog/?p=30319And you thought tax rates on regular income were outrageous today. Take a look at how high the top and bottom income tax rates for both were 70 years ago. Yikes!

In 1944 and 1945, taxpayers handed over 94% of their hard-earned income to the federal government on any gains falling within the highest tax bracket. Meanwhile, even the lowest-earning workers at that time were paying a 23% tax on income falling within the bottom bracket. Compare that to 39.6% and 10%, respectively, in 2015.

In 1913, when the income tax was initiated, the top tax rate was just 7% on earnings above $500,000 — that’s $11 million in today’s inflation-adjusted dollars. As for the lowest tax rate, it was just 1%.

Ah, the good ol’ days.

Although the next chart only goes back to 1970, the $200,000 top income tax tier for that year is equivalent to a little more than $1.2 million today, so I guess the government giveth (in the form of lower rates) and taketh away (via a top tax bracket that is more than $10 million lower in inflation-adjusted dollars than it was in 1913).

But, as you can see, all in all it’s pretty obvious that the federal government taketh a lot more than it giveth away.

Bonus chart: The capitals gains tax rate has moved up and down over the years too.

]]>http://lenpenzo.com/blog/id30319-top-and-bottom-federal-income-tax-rates-and-tiers-since-1913.html/feed1http://lenpenzo.com/blog/id30319-top-and-bottom-federal-income-tax-rates-and-tiers-since-1913.htmlAn Expert Explains How to Know If Your Artwork Is Valuablehttp://feedproxy.google.com/~r/LenPenzo/~3/FSiWPL-ktOA/id1489-art-insurance-for-fine-art.html
http://lenpenzo.com/blog/id1489-art-insurance-for-fine-art.html#commentsWed, 25 Mar 2015 12:15:54 +0000http://lenpenzo.com/blog/?p=1489When Marvin Gaspar came to my office for his appointment to discuss an appraisal, I had little clue where I would end up on the roller coaster ride he was about to take me on. Marvin was a claims adjuster from an insurance company who was asking about appraising an artwork.

He showed me a few photographs of a Miro (Joan Miro – Spanish, 1893 – 1983) lithograph that his company had been asked to pay a claim on. Of course to him, it was just a bunch of marks on paper, but the claim was for well over $10,000, so his boss had asked him to get a second opinion. I could see danger written all over this one.

The subject artwork had been stolen, along with a number of other things from the claimants home, and the insurance company was involved in the process of settlement. The artwork had been purchased on a cruise ship during the owner’s vacation excursion with his family. More danger.

After careful research, I submitted my detailed report. The Miro lithograph was appraised at fair market value for $2,600. When the owner saw the results, I had nothing less than a hornet’s nest in my face, he was so irate. I simply asked him if he would like to replace the lithograph, and his answer (to my surprise) was “yes.”

Within two weeks, I presented the owner with a replacement lithograph from the same edition, framed and with an even lower serial number than the one he lost, in exchange for a check for $2,600.

It actually was the easiest thousand dollars I had ever made at the time, not to mention my appraisal fee of $200 from the insurance company. The owner was delighted, as he received a suitable replacement for his artwork. The insurance company was delighted, as they saved nearly $9,000 in the process, in exchange for a $200 fee, and I was delighted in that I made $1,200 in the process of making two different people, on two different ends of the same transaction, happy as larks.

Art Value Is Often Very Subjective

What’s the point? It’s not that the people, whether representing an insurance company or an individual who suffered a loss, were dishonest or trying to pull something over on each other. It is simply this: everything has a certain value and, if that value to individuals in transactions is fair and equitable, the economy of our nation flows with much greater ease and simplicity.

But the truth is, lawsuits are filed every day over issues of value. Usually, it’s not that one person has intentionally defrauded another in a business or relationship issue. It’s more that the expectations of one or the other has been compromised, and the feeling of loss drives one to express that loss in the legal system.

In fact, art is a completely unique area of commerce, where value is very often quite subjective.

For example, if I go to WalMart to buy a vacuum cleaner, I can simply compare price tags of various brands; it’s all rather cut and dried. Then, if my vacuum cleaner is burnt up in a fire, I can collect an insurance check for my purchase price and replace it.

On the other hand, if my Picasso drawing is stolen, I might have a receipt showing that I paid $23,000 for it in 1974, but I cannot replace it for that in 2010. Unlike that WalMart vacuum cleaner, the Picasso drawing cannot be replaced, not even once.

Often, the value of a drawing has both intrinsic as well as deep personal value. For example, it may have been bought while on someone’s honeymoon in Spain and carries the hand print of their lives with it. What’s that worth?

We can replace that drawing with this drawing, but it will never be the same. Even if we’re replacing an etching (or any other multiple image) with its twin, it will never be exactly the same.

Fortunately, if you’re looking to invest in art, there are some reliable constants and guiding principles you can lean on. Here are but a few:

1. When determining the value of fine artwork, first look within.

I’m occasionally approached by individuals who ask me if their planned purchase is worth what they are about to pay. My simple reply is this: “If you have the money, and are willing to pay the asking price, then buy it and enjoy it for what it is to you.” After all, is this not the foundation of commerce? Does it matter if it’s a vacuum cleaner or a fine painting? Not if you are honest with yourself about the foundation of your purchase.

A fellow art aficionado once passed along to me this bit of wisdom regarding how to conclusively determine whether or not to buy a painting: Ask yourself, how you would feel if I was standing behind you and bought the painting the minute you walked away. Would you be grateful that I, in a way, saved you from yourself, or would you lament the loss of a fine work of art you had the opportunity to acquire, but momentarily lacked the conviction to do so?

So there it is. We have a value guideline: What’s it worth to me?

2. For expensive art, get a professional appraisal before you insure it.

The next step is determining the value of your artwork when it comes to the insurance company; in this case, we need to be less subjective and more objective. Is there a common value that can be determined by the marketplace? Of course there is. If the marketplace is the flea market, where you’re buying an artwork for $35, it really doesn’t matter. But if you’re about to purchase a Miro lithograph from a cruise line sales pitch for around $11,500, it might make all the difference in the world.

When to seek the counsel of a professional is a matter of personal choice. To some, $11,500 is not a great sum. To others, it’s a whole lot. I generally counsel people who come to me for such evaluations, that beginning around the one to two thousand dollar point, one needs to be thinking about a professional appraisal. Most people cannot really afford a loss of $2,000 and would need help to recover.

The secret to recovering is this: have a thoughtful, relevant and timely appraisal in hand at the time you sign for the insurance, not after a loss. Why do battle with an insurance company, when it can be avoided at the start? Insurance companies are like any other, in that they are in business to make a profit, and paying unsubstantiated claims are an invitation to warfare.

3. Certificate-style artwork appraisals are rarely credible.

An appraisal done on a Xerox copy of a diploma-looking “certificate” is usually not worth a great deal. I’ve seen so many of these that I barely glance at the “appraised value” on such documents any more. There is usually no foundation, no discussion of value, no comparisons or substantiation for value. Such documents are of very little value at all, and are the bane to the insurance world and an invitation to disaster.

4. A professional art appraisal protects both the insurance companies and the art owners.

Any good appraisal will be chock full of explanations, comparisons and logical and timely conclusions that give insurance companies the confidence they require before paying a claim or charging a policy premium. In addition, a good appraisal will have some kind of support for authenticity of the subject artwork. No appraisal is worth its salt, if the artwork is fake to begin with (but, that’s a whole ‘nother topic).

On the other hand, the owner or insured is the one paying the premiums. Why pay the premiums on a half-million dollars worth of goods, if they are only worth $100,000? Premiums ain’t cheap. And we pay for what we are getting, so get what you need and get the value you’re paying for.

5. Believe it or not, art insurance companies are on your side.

Always remember that insurance companies are organizations made up of a lot of people; people just like you and me. Most competent workers are not out to stick it to anyone. They were hired to serve the customers of the company, not the other way around. Good service is what makes a company grow, and if you help your insurance company with viable information at the time of initiating a policy, everyone involved will benefit from it.

About the Author

Gayle B. Tate is the founding owner and director of G. B. Tate & Sons Fine Art since 1967. He specializes in American and European paintings, sculpture, drawings and fine prints. His services include authentication and appraisal of fine art. He has also worked with federal authorities and insurance companies to solve and prevent art fraud issues and theft in the marketplace. You are invited to visit his web site at http://www.gbtate.com.

Photo Credit: Robin.elaine

]]>http://lenpenzo.com/blog/id1489-art-insurance-for-fine-art.html/feed13http://lenpenzo.com/blog/id1489-art-insurance-for-fine-art.htmlScotland Homes: Breaking Down the Three Parts of Your Home Reporthttp://feedproxy.google.com/~r/LenPenzo/~3/Dx0eDmPXrbs/id30299-scotland-homes-breaking-down-the-three-parts-of-your-home-report.html
http://lenpenzo.com/blog/id30299-scotland-homes-breaking-down-the-three-parts-of-your-home-report.html#respondTue, 24 Mar 2015 12:15:40 +0000http://lenpenzo.com/blog/?p=30299The vast majority of homes that are being marketed for sale have to provide a home report as part of the selling process, in order to comply with current legislation.

The home report is actually three documents which are combined to create a comprehensive information pack that is intended to supply a prospective purchaser with all the necessary details that they might want to know about the property they are interested in buying.

You can often get inexpensive home reports in Dundee or whichever region you are located in. Whether you are a buyer or a seller who is thinking of putting their property on the market, here is a look at the three parts of a home report.

Three components

What you can expect to find in a home report are three separate components, which are collated from a variety of sources and using qualified surveyors to inspect and value the property in question.

The first component is the single survey, and this contains detailed information relating to the condition of the property and also provides a professional valuation based on current market conditions and the state of the property.

The next part is the energy report, which takes a look at the energy efficiency rating of the property and the impact it has on the environment based on its energy performance and how the house is heated and insulated.

The third component is a property questionnaire, which should contain answers to frequently asked questions such as the Council Tax band the property is in and relevant information such as the parking arrangement and details of any modifications or extensions that have been added.

Single survey

The single survey is carried out by a qualified property surveyor and the report will give you information such as the type, level of accommodation, neighborhood, age and construction of the property.

It will also point out the extent of the survey and how thorough their investigations were when they checked on the property and the report will also highlight anything that the surveyor could not inspect at the time of their visit, so that any buyer is aware of this fact.

The principle purpose of the single survey is to carry out a visual inspection of the inside and outside of the building without causing any damage or disturbing any harmful or hazardous materials. Any visible faults or potential repair issues that are noted should be included in the report, together with an opinion on the current value of the property in their professional opinion.

A buyer can pay for a more comprehensive survey to be carried out at a later date if they want to, or rely on the home report as accurate guidance, whilst being aware of its limitations compared to a more detailed report which would be more expensive.

Energy performance certificate

There is a lot of useful information contained with the Energy Performance Certificate (EPC) and this is intended to show buyers how energy efficient the property is and how much it is likely to cost to run.

The EPC provides an estimated figure for energy costs over the next three years and then also provides a figure on how much you could save on that figure if improvements are made.

The property will be given an energy efficiency rating that is a combination of a score between 1-100 and a grade between A to G. The best score would be an A rating with a score of 92 or more, but older homes will often fall into a lower category.

It might show that the property is in band F for example with a score of 32 and that homes in Scotland are normally band G. The purpose of the comparison is to show how it rates against other similar properties and the report also provides a potentially achievable score and rating, which could be achieved if improvements are made.

The same scoring and grading system is used to produce a figure for the environmental impact of the property in regard to CO2 emissions.

Property questionnaire

The seller has to complete the questionnaire and this information will be given to anyone interested in buying the property who then requests a copy of the home report.

The answers provided will help to clarify any standard issues or questions that need to be asked about a property when you are thinking about buying and will help your solicitor with the speed of the transaction if they already have some of the information they need for their searches.

The home report is a very useful and important document for buyers and sellers and as most homes that are being marketed need one. Make sure you request a copy for any property that you are thinking of making an offer on.

About the Author: Josh Henderson is a property investor who has a passion for real estate. Also a passionate writer, he enjoys sharing his experiences online. His articles predominantly appear on property investment blogs.

Photo Credit: James Thompson

]]>http://lenpenzo.com/blog/id30299-scotland-homes-breaking-down-the-three-parts-of-your-home-report.html/feed0http://lenpenzo.com/blog/id30299-scotland-homes-breaking-down-the-three-parts-of-your-home-report.htmlWhy Coffee Drinkers Are Wasting More Than Just Money at Starbuckshttp://feedproxy.google.com/~r/LenPenzo/~3/YymTbRdoius/id483-im-just-askin-why-waste-money-at-starbucks.html
http://lenpenzo.com/blog/id483-im-just-askin-why-waste-money-at-starbucks.html#commentsMon, 23 Mar 2015 12:15:54 +0000http://lenpenzo.com/blog/?p=483I don’t mean to make you uncomfortable, but I think it’s high-time we had a serious conversation about Starbucks.

There’s a Starbucks in my neighborhood grocery store.

Then again, where isn’t there a Starbucks?

Take the town where I live, for instance: it has almost as many Starbucks (10) as the Lakers have NBA championships (16). Based on those numbers you’d think I come from a large city, but it’s a fairly small town of 70,000 residents or so — that’s one Starbucks for every 7000 people.

By comparison, we have only two McDonald’s. But I digress.

Let me get to the real issue here; the one that’s always bubbling just under the surface, but nobody wants to talk about:

Occasionally the Honeybee likes to get a venti Caramel Macchiato which, I’ve been told, is some kind of special caramel vanilla coffee drink. These abominations on the traditional cup of joe cost approximately $5 with tax, which is why I like to call Starbucks “Five-bucks.”

Anyway, the Honeybee might have one of these overpriced concoctions a couple times a month, which is tolerable as far as our budget is concerned — but I know people who go to work with one of these 20-ounce Starbucks coffee concoctions … every. stinking. morning.

I wonder if they ever take the time to really consider how much money they’re wasting on glorified java.

Let’s assume they average two weeks of vacation, and another two weeks of sick time and holidays each year. That means they’re buying Starbucks brew 48 weeks a year, 5 days a week. That’s 240 trips to Starbucks at roughly $5 a pop, or $1200 annually for a measly cup of morning coffee! Remember, this doesn’t count the days they go to Starbucks when they aren’t working.

Even worse, if you consider the 10 minutes most people spend on average standing in line and waiting for the baristas to make their drink, then that equates to an entire 40-hour work week each year — so they’re not only wasting money, they’re wasting time too. And lots of it.

With that in mind, can anybody tell me why queuing up to spend $5 for a cup of flavored foo foo coffee at Starbucks is better than making your own Folgers at home, or walking into your local Quickie Mart and taking a minute to pay a buck and change for the Maxwell House blend they’re serving up?

I mean come on, folks. Is going to Starbucks — or any other fancy-pancy coffee house for that matter — really worth 40 hours of your life each year and the annual $900 premium?

Just how popular is the iPhone with United States teenagers? In a recent survey of 7500 teens, 61% said they owned an Apple phone. In another survey of iPhone usage, by Chitika Insights, they looked at the use of iPhones by state. They found that states with the highest percentage of college graduates also had a higher rate of iPhone use; Alaska, Montana, Kansas, New York, Mississippi, and Vermont all had iPhone usage between 55% and 65%.

So the iPhone is here to stay. Apple’s newest addition to the family, the iPhone 6, offers many new features that make it easier to use, more powerful, and more efficient. Here is a brief summary:

Technical Specifications

The iPhone 6 comes in three colors: gold, silver, and gray. Basic storage capacity starts at 16GB, with increased capacity of 64GB or even 128GB. The iPhone6 weighs a mere 4.55 ounces, and it’s compact too at just 5.44 inches tall by 2.64 inches wide. The display is 4.7 inches diagonal, and offers the following features:

Retina HD display made of ion strengthened glass

LED-backlit widescreen

Multi-touch display with IPS technology

1400:1 contrast ratio

1334 by 750 pixel resolution at 326 ppi

Display zoom

Oleophobic coating on the front (fingerprint-resistant)

500 cd/m2 max brightness

Operating System

iOS 8 comes with Siri, a virtual assistant that allows you to operate your phone hands-free. When operating with a trustworthy carrier, you also get family sharing, iCloud drive, iTunes radio, spotlight search, and a notification center. AirDrop allows you to share videos and photos to other iPhone users who are nearby. AirPlay is a wireless streaming feature to your HDTV from your phone. CarPlay is the same kind of feature, only for your phone. Although it’s only available in newer cars, soon it will be standard. To fully utilize your phone and all its operating system has to offer, you’ll need an iPhone 6 with a reliable network to ensure constant access to these incredible features.

Camera

The camera on the iPhone 6 has all of the best features of the previous iPhones, such as auto image stabilization, exposure control, a f/2.2 aperture, the True Tone flash, and burst mode. You can tap to focus, geotag your photo, and have a timer mode. It also offers autofocus with focus pixels; this allows you to take pictures when your subject is moving.

The iSight also features better tone mapping for color and detail retention. Your photos will look much better, especially in shadowed conditions. When recording video, Apple has upgraded the components in the iSight for better image stabilization. Small movements of your phone won’t affect the quality as much as it did in the past.

More Sensors

Apple has always packed in many sensors into its electronic devices. The iPhone 6 introduces a barometer to this growing list that tracks your altitude.

The sleep/wake button is on the right hand side of the phone — instead of the top — offers more flexibility in one-handed use. It has a feature called “reachability:” Just tap twice on the home button, and the buttons on the top of the phone drop down to the bottom of the screen.

Apple Pay

Near Field Communications (NFC) is a technology that allows small bits of data to be passed between two devices and is the secret to the Apple Pay Technology. Apple included the NFC chip so that you can utilize Apple Pay in places that are accepting it. Although it’s still catching on, it’s a great idea that means you don’t have to keep up with multiple debit cards in your wallet.

It’s Hard to Go Wrong

The iPhone 6 is the slimmest phone Apple has ever produced. It offers up to 14 hours of talk time on 3G, with 250 hours of standby time on one full charge. Twenty-nine apps come preinstalled, with many other apps available to download through the iTunes store. This version of the iPhone offers many features that you won’t find with any other smartphone.

Take a look for yourself and see what this phone has that will work for you.

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

Let’s get right to it this week …

Credits and Debits

Debit: According to the latest data from the US Census Bureau, by the end of 2012, a stunning 34.5% of all Americans — almost 110 million people — were living in households that received federal welfare benefits.

Debit: It doesn’t help that, as John Titus points out, today 85% of the working age population entering the workforce for the first time either can’t find a job or stopped looking for work. Compare that to only 46% in October 2008 — and just 21% in February 2000.

Debit: By the way, if you include non-welfare payouts such as Social Security, Medicare, unemployment and veteran’s benefits, the total number of Americans in households receiving a government check climbs to 49.5%. Who thinks that is sustainable? Well, besides stock market investors.

Credit: To be fair, everyone can’t earn a living by simply being a world champion competitive eater like Matt Stonie. Last week, the 120-pound phenom from San Jose, California, downed seven Shamrock shakes from McDonald’s — five full quarts, topped with whipped cream and cherries — in 4 minutes 41 seconds. Then he had a cheeseburger for dessert. No, really.

Debit: It’s a good thing this guy doesn’t live in rural America, where Obamacare regulations have led to the closure of 48 rural hospitals since the law passed in 2010. And another 283 rural clinics are on the ropes.

Credit: Hey, Obamacare ain’t all bad — at least I have more money in my wallet now thanks to that $2500 drop in my annual healthcare premiums. Oh wait …

Debit: Meanwhile, I see the law — which Obamacare advocates told us had to pass so everyone would have “affordable” health insurance — will reach only 65% of the CBO’s original coverage projection for 2015. On second thought, that’s probably a good thing.

Debit: More signs that the world financial system is breaking down: On Wednesday, there were plenty of utterly breathtaking moves in the currency markets, led by the euro surging more than 4% against the dollar within a couple of hours.

Debit: Yes, by Thursday morning the “strong” dollar recouped all of its losses — but the world’s two biggest currencies shouldn’t behave like the dubious fiat issued by two-bit banana republics. Something’s amiss.

Debit: Then again, with negative interest rates on the scene now, that should be obvious. It’s truly a Bizarro world we’re living in when banks are punishing savers and rewarding borrowers. Unfortunately, no civil society can withstand that kind of monetary policy for long.

Debit: Speaking of negative numbers, Zillow is now forecasting that the number of homeowners with negative equity — read: stuck with an underwater mortgage — will not be decreasing any time soon. That’s news you don’t expect to hear in a healthy economy.

Credit: Ah, there I go again: Giving another one of my patented “doom and gloom” sermons that always seem to take more than a few folks out of their comfort zone. Surely, things aren’t that bad. Maybe they’re not.

Credit: After all, US sales of so-called “luxury” toilet paper outsold all other types for the first time in ten years; in fact, Americans — led by Mr. Stonie, no doubt — bought $1.4 billion worth of those extra-soft, really-thick, super-absorbent rolls last year. Yep. America’s back, baby!

Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

Last Week’s Poll Result

How long have you been with your current employer?

1 to 10 years (36%)

11 to 25 years (31%)

More than 25 years (12%)

I’m retired (8%)

Less than 1 year (6%)

I’m currently unemployed (6%)

Almost 500 people answered this week’s survey question. Based upon the responses, more than two in five people have worked with their current employer for more than a decade. On the other hand, only 6% are currently working with a new company. Although this poll is far from scientific, the number of people who said they are unemployed does closely track the current U-3 unemployment rate.

Other Useless News

Here are the top — and bottom — five Canadian provinces and territories in terms of the average number of pages viewed per visit here at Len Penzo dot Com over the past 30 days:

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach me at: Len@LenPenzo.com

After reading my article on why smart people aren’t usually impressed by those who drive luxury cars, Anonymous left a comment to brag about the new $167,000 2015 BMW Alpina B6 Gran Coupe sitting in his driveway (thanks to his in-laws, who had to cosign his car loan). Here’s an excerpt:

Cars tell people who you are! I wish I could afford a Bentley Flying Spur but it costs about $80,000 more.

Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it becomes, marked: ‘Account overdrawn.’